Arizona Tax Incentives
Arizona Rebates
Financial Incentives- DSIRE- ARIZONA Incentives/Policies for Renewables & Efficiency
Renewable energy and energy efficiency solutions are now more affordable than ever thanks to the abundance of available rebates and incentives.
View the Residential, Commercial, or Builder incentives that may be available for you, or to learn more about how you can take advantage of these great incentives, call the SRE Energy Experts at (602) 325-8379.
Welcome to the Arizona Climate Action Initiative- There is a growing scientific consensus that increasing emissions of greenhouse gases to the atmosphere are affecting the temperature and variability of the Earth's climate. Recognizing the profound implications that global warming and climate variation could have on the economy, environment and quality of life in the desert Southwest, Executive Order 2005-02 was signed on Feb. 2, 2005, establishing the Arizona Climate Change Advisory Group (CCAG).
Renewable energy and energy efficiency solutions are now more affordable than ever thanks to the abundance of available rebates and incentives.
View the Residential, Commercial, or Builder incentives that may be available for you.
Residential -Solar Electric (PV), Solar Water Heating (Thermal) and Wind Energy
Federal Income Tax Credit
A federal income tax credit of 30% of the system cost is available for solar electric (PV) systems, solar water heating (thermal) and wind energy systems.
Arizona State Income Tax Credit
A state income tax credit of 25% of the system cost (up to $1,000) is available for solar electric (PV) systems, solar water heating (thermal) and wind energy systems.
Arizona Property Tax Exemption
The Arizona property tax code exempts from taxation the amount of the appraised property value that arises from the installation of a solar electric, solar water heating, or wind energy system.
Solar Electric (PV) Systems Utility Rebates
Arizona Public Services
Arizona Public Services (APS) provides their grid-tied customers up to $3.00 per installed DC watt (up to 50% of the system cost) through their solar electric (PV) rebate program. For customers located within APS territory, but not connected to the grid, APS provides up to $2.00 per installed DC watt for a solar electric (PV) installation (for systems less than 5 kilowatt).
Salt River Project
Salt River Project (SRP) provides their customers up to $2.70 per installed watt (up to $13,500) through their SRP EarthWise Solar Energy program.
Tucson Electric Power Company & Unisource Energy
Tucson Electric Power Company (TEP) and Unisource Energy (UES) provide up to $3.00 per DC watt for grid-tied customers and $2.00 per DC watt for off-grid residences in their service areas (on systems up to 20 kilowatt AC) through their SunShare Programs.
Additionally, TEP and UES customers can opt to receive a 10, 15, or 20 year Production Based Incentive (PBI).
Please contact us for a quote for your home.
Solar Water Heating (Thermal) Systems Utility Rebates
Arizona Public Services
Arizona Public Services (APS) provides their customers an incentive equal to $0.75 per installed kilowatt hour of energy savings in the first year (up to 50% of the system’s cost) for a solar water heating system.
Salt River Project
Salt River Project (SRP) provides their customers an incentive of $0.50 per installed kilowatt-hour of energy savings for a solar water heating system.
Tucson Electric Power Company & Unisource Energy
Tucson Electric Power Company (TEP) and Unisource Energy (UES) provide an incentive of $750 plus $0.25 per installed kilowatt-hour of energy savings (up to $1,750) for a solar water heating system.
Additionally, TEP and UES residential customers can opt to receive a 10, 15, or 20 year Production Based Incentive (PBI).
Please contact us for a quote for your home.
Wind Energy Systems Utility Rebates
Tucson Electric Power Company & Unisource Energy
Tucson Electric Power Company (TEP) and Unisource Energy (UES) provide an incentive of $2.50 per installed AC watt for grid-tied and off-grid wind energy systems installed in their service territory (up to 1,000 kW).
Customers may opt to receive a 10, 15, or 20 year Production Based Incentive (PBI).
Please contact us for a quote for your home.
Energy Efficiency – Air Conditioning, Heating, Insulation, and Other Energy Efficiency Improvements
Federal Income Tax Credit
A federal income tax credit of up to $1500 is available for qualified home energy efficiency improvements such as insulation, high-efficiency air conditioning systems, high-efficiency heat pumps and more.
Arizona Public Services
Arizona Public Services (APS) customers are eligible for rebates of up to $400 for installing a new high efficiency air conditioning unit or heat pump (minimum of 14 SEER / 11.5 EER).
Tucson Electric Power Company & Unisource Energy
Tucson Electric Power Company (TEP) and Unisource Energy (UES) customers are eligible for rebates of up to $250 for installing a new high efficiency air conditioning unit or heat pump (minimum of 14 SEER).
To learn more about qualifying for these rebates, please contact us.
Commercial
Solar Electric (PV), Solar Water Heating (Thermal) and Wind Energy
Treasury Grant
Commercial projects may opt to apply for a Treasury Energy Grant in lieu of the investment tax credit (ITC). This applies to equipment placed in service by December 31, 2010 or construction has begun by December 31, 2010 and is completed by December 31, 2013. The grant is paid out by the Treasury within 60 days of the project completion and application is filed.
Federal 5 Year Accelerated Depreciation Schedule
Under the federal Modified Accelerated Cost-Recovery System (MACRS), businesses may recover the cost of a solar electric, solar water heating, or wind energy system on an accelerated 5-year schedule. In 2008 and 2009 the above investments qualify for the 50% Bonus Depreciation schedule. The owner is entitled to deduct 50% of the adjusted basis of the property in the first year of operation. The remaining 50% of the adjusted basis of the property is depreciated over the ordinary depreciation schedule. The Depreciation Basis is calculated as the System Installation Price – (1/2) Federal Investment Tax Credit.
Federal Income Tax Credit
A federal income tax credit of 30% of the system cost is available for solar electric (PV) systems, solar water heating (thermal) and wind energy systems.
Arizona State Income Tax Credit
A state income tax credit of 10% of the system cost (up to $25,000 for one building and up to $50,000 in total credits in a single year) is available for solar electric (PV) systems, solar water heating (thermal) and wind energy systems.
Arizona Property Tax Exemption
The Arizona property tax code exempts from taxation the amount of the appraised property value that arises from the installation of a solar electric, solar water heating, or wind energy system.
Please contact us for a quote for your business.
Solar Electric (PV) Systems Utility Rebates
Arizona Public Services
Arizona Public Services (APS) provides their grid-tied customers up to $2.50 per installed DC watt (up to 50% of the system cost or $75,000) through their solar electric (PV) rebate program. For customers located within APS territory, but not connected to the grid, APS provides up to $1.50 per installed DC watt for a solar electric (PV) installation.
Additionally, APS customers can opt to receive a 10, 15, or 20 year Production Based Incentive (PBI).
Salt River Project
For solar electric systems smaller than 20 kW, Salt River Project (SRP) provides their customers up to $2.70 per installed watt (up to $13,500) through their SRP EarthWise Solar Energy program.
For solar electric systems greater than 20 kW, Salt River Project (SRP) provides their customers up to $2.25 per installed watt (up to $450,000) through their SRP EarthWise Solar Energy program.
Tucson Electric Power Company & Unisource Energy
Tucson Electric Power Company (TEP) and Unisource Energy (UES) provide up to $2.50 per DC watt for grid-tied customers (on systems up to 20 kilowatt) through their SunShare Programs.
Additionally, TEP and UES grid-tied and off-grid customers can opt to receive a 10, 15, or 20 year Production Based Incentive (PBI).
Solar Water Heating (Thermal) Systems Utility Rebates
Arizona Public Services
Arizona Public Services (APS) provides their customers an incentive equal to $0.75 per installed kilowatt hour of energy savings in the first year (up to 50% of the system’s cost) for a solar water heating system.
Additionally, APS commercial customers can opt to receive a 10, 15, or 20 year Production Based Incentive (PBI).
Salt River Project
Salt River Project (SRP) provides their customers an incentive of $0.50 per installed kilowatt-hour of energy savings (up to $500,000 or 60% of total system cost) for a solar water heating system.
Tucson Electric Power Company & Unisource Energy
Tucson Electric Power Company (TEP) & Unisource Energy (UES) provide a 10, 15, or 20 year Production Based Incentive (PBI) for commercial solar water heating system installations.
10-Year: $0.129 per kilowatt-hour
15-Year: $0.120 per kilowatt-hour
20-Year: $0.115 per kilowatt-hour
Please contact us for a quote for your business.
Wind Energy Systems
Tucson Electric Power Company & Unisource Energy
Tucson Electric Power Company (TEP) & Unisource Energy (UES) provide an incentive of $2.50 per installed AC watt for grid-tied and off-grid wind energy systems installed in their service territory (up to 1,000 kW).
Customers may opt to receive a 10, 15, or 20 year Production Based Incentive (PBI).
Please contact us for a quote for your business.
Energy Efficiency
Arizona Public Services
APS small business customers are eligible for rebates on energy-efficient lighting. Rebate amounts range from $1.75 to $75 per unit.
APS large business customers can choose from a prescriptive list of typical energy efficiency rebates with fixed rebates levels, including high-efficiency lighting, heating and cooling system upgrades and more. For upgrades not on the prescriptive list, businesses may qualify for a custom incentive (funded at $.11/annual kWh of savings). To find out if your business is eligible, please contact us.
Salt River Project
The SRP PowerWise Standard Business Solutions rebates provides incentives for installation of high-efficiency lighting, heating, ventilation, and air conditioning (HVAC) equipment, motors, and/or variable frequency drives (VFDs) (up to $75,000 per year). Rebates for energy efficiency measures vary
To find out if your business is eligible, please contact us.
Tucson Electric Power Company & Unisource Energy
TEP and UES small and large business customers are eligible for rebates on energy-efficient lighting, air conditioners, heat pumps and more. Rebates for energy efficiency measures vary.
To find out if your business is eligible, please contact us.
Builders - Energy Efficiency
Federal Tax Credit – Energy Efficient Homes
Tax credits of up to $2,000 are available to builders for construction of new energy-efficient homes.
Homes qualify for a $2,000 credit if they are certified to reduce energy consumption by 50% relative to the International Energy Conservation Code (IECC) standard and meet minimum efficiency standards established by the Department of Energy.
Building envelope component improvements must account for at least 20% of the reduction in energy consumption, but specific energy efficiency measures are not restricted.
Tucson Electric Power Company & Unisource Energy
TEP and UES offers rebates for integrating energy efficient measures into the construction of a building. The building's energy efficiency will be modeled against industry-based standards to determine projected energy savings. Rebate amounts will be based on the estimated energy savings over a one year period.
The statements contained herein are not intended to and do not constitute an opinion as to any tax or other matter, and may not represent all potential incentives available to you. You should consult your tax advisor with respect to any taxes or incentives that you may qualify for.
Energy Rebate and Tax Incentive Programs
The Federal Government and some states and utilities and quasi public institutions offer rebates and tax incentives for energy-efficient upgrades. Cash rebates will lower your costs when purchasing high efficiency appliances, pumps, heating and cooling appliances, solar and wind.
The American Council for an Energy Efficient Economy ( ACEEE). The American Council for an Energy-Efficient Economy is a nonprofit organization dedicated to advancing energy efficiency as a means of promoting both economic prosperity and environmental protection.
Rebate programs are most common for energy intensive appliances such as refrigerators, air conditioning equipment, and clothes washers. However, we have seen utilities offer cash rebates for large items including rebates for high-efficiency furnaces, sump pumps and water pumps while water utilities may offer rebates for water-saving clothes washers. If you plan to buy a major item soon go to our directory of state utility web sites and see what rebates they offer if you intend to upgrade to a more energy efficient product. For more information on rebates and state tax incentive programs, visit the ACEEE Web site for a state-by-state summary of programs at: http://www.aceee.org/new/eedb.htm
A number of states have introduced tax incentives—typically income tax credits or elimination of state sales tax—for the purchase of high-efficiency appliances. The Energy Policy Act of 2005 enacted new federal tax credits for consumers for 2006 and 2007.
For more information on rebates and state tax incentive programs, visit the ACEEE Web site for a state-by-state summary of programs.
As of our last look the data base included the following states offering energy rebate programs.
Arizona California Colorado Connecticut Delaware District of Columbia Illinois Maine Maryland Massachusetts Montana New Hampshire New Jersey New Mexico Nevada New York Ohio Oregon Pennsylvania Rhode Island Texas Utah Vermont Wisconsin Wyoming
Given the acute rise in energy costs and the governments need to address rising energy costs, we think that all states will be offering rebates and energy savings programs of all kinds. There is much money to be saved by researching this area if you are upgrading or building. We will do our best to continue to locate cost savings programs for you.
In some areas organizations have coordinated with the statewide and utility programs that provide energy efficiency programs and services. The regional market transformation organizations in the US are:
The Northeast Energy Efficiency Partnerships (www.neep.org). A regional nonprofit organization founded in 1996 whose mission is to promote energy efficiency in homes, buildings and industry in the Northeast through regionally coordinated programs. A list of participating utilities with energy efficiency programs for the North East can be found here at http://www.neep.org
Northwest Energy Efficiency Alliance (www.nwalliance.org). The Northwest Energy Efficiency Alliance is a non-profit corporation supported by electric utilities, public benefits administrators, state governments, public interest groups and energy efficiency industry representatives.
Midwest Energy Efficiency Alliance (www.mwalliance.org). The Midwest Energy Efficiency Alliance (MEEA) is a collaborative network whose purpose is to advance energy efficiency in the Midwest in order to support sustainable economic development and environmental preservation. There are some energy efficiency incentives offered here at: www.mwalliance.org
Southwestern Energy Efficiency Partnerships (www.swenergy.org). The Southwest Energy Efficiency Project (SWEEP) is promoting greater energy efficiency in a six-state region. The following link: www.swenergy.org provides a list of ongoing state, local, and utility policies and programs to advance energy efficiency in each of the Southwest states.
Federal Government Incentives
Fannie Mae Corporation Fannie Mae provides conventional mortgages for energy efficient mortgages. They also provide residential loans for energy efficiency upgrades, including solar water & space heating systems and PV. They are located at www.fanniemae.com
Federal Home Mortgage Loan Corp (Freddie Mac): Freddie Mac provides conventional mortgages for energy efficiency mortgages. They are located freddiemac.com
U S. Department of Agriculture:The USDA's Rural Housing Service, Rural Business-Cooperative Service provides assistance up for solar thermal systems and PV. They are located at www.usda.gov
U.S. Department of Energy: DOE provides several programs, the State Energy Conservation and Weatherization Assistance. The amount of funding and eligibility under these programs varies. They typically cover energy-efficient features and equipment, solar thermal systems, and PV systems. They are at www.doe.gov
U.S. Environmental Protection Agency: EPA's Energy Star-Rated Home and Energy Star-Rated Building programs provide funding at levels guided by Fannie Mae and Freddie Mac limits. Eligible expenses are for energy-efficient features making home up to 30% more efficient than code; solar thermal water and space heating; PV. They are at: www.epa.gov
HUD: The U.S. Department of Housing and Urban Development's Section 203 (K) rehabilitation loan program. This program is available for one to four units; condominiums are excluded, and are designed to provide funds for the purchase of property that will be fixed up. HUD provided a number for more information. Try this link http://www.hud.gov/
Federal Housing administrations Title 1 Loan Program: You can rehab a home with HUD 203K program. Here is a link for programs in your state - http://www.hud.gov
